We received this Press Release through the internet. We are not vouching for the scheme, but it looks an interesting idea.
- A great way to save for your little one’s future
- Start from just £1 a month
- Friends and family can contribute too
New parents receive up to £660 in baby gifts, from pushchairs to baby outfits. Savings schemes can be a popular alternative. But have you ever thought of asking friends and families to contribute to your child’s pension instead? It could mean a half million pound pension pot for junior at retirement!
Some parents are currently helping older kids onto the property ladder but experts at Virgin Money predict they’ll increasingly want to help plan for their kids’ old age as early as possible. In the last twelve months, one in ten pension schemes started with Virgin Money have been for children and half of those were for under 5’s.
By asking well-wishers to initially contribute to a pension scheme and then putting your child benefit in each week – equivalent to around £75pm – your child could end up with a pension pot of £618,000 at 65, even if they never pay a penny in themselves!
Pensions are one of the most tax efficient kids’ savings schemes around and offer unrivalled incentives. Invest up to £2808 in a year and the tax relief will top it up to £3600 – Instantly boosting your children’s savings by nearly 30%! Of course you can pay in more if you want to but you won’t get the tax relief on anything extra.
You can set up a pension for a child from birth – with investments starting from just £1 a month. And anyone can make a contribution, from grannies to godmothers to aunts and uncles! It’s an excellent way to start building a secure financial future for your children, grandchildren, nieces and nephews. They won’t be able to spend the money until they retire but you’re giving them a head start now so that they don’t have to save so hard later.
Dad of two, Jason Wyer-Smith of Virgin Money explains, “The thought of saving for a pension can fill a young person with dread so it’s great to be able to get your kids off to a flying start when they’re still in nappies!”
To find out more about Virgin Money’s pension scheme for children, take a look at: